Payward, the parent company of crypto exchange Kraken, is expanding its tokenized stock offering beyond U.S. companies. The firm is betting investors want onchain access to equities from around the world.
Payward, which developed the xStocks framework, told CoinDesk it is working with investment infrastructure provider GTN. The goal is to bring Hong Kong-listed stocks to the platform. U.K., European and South Korean equities should follow, but only after regulatory approvals are secured.
The partnership also sets the stage for xStocks to move beyond equities. The company says it may eventually tokenize other asset classes as well.
Taking tokenized stocks beyond the U.S.
This move comes at a time when competition in tokenized equities is heating up. Both crypto firms and Wall Street institutions are racing to bring stock trading onchain.
Earlier this month, Robinhood expanded its tokenized stock offering beyond European users. Coinbase is also planning to offer stock tokens. The Depository Trust & Clearing Corporation (DTCC), which is the backbone of U.S. securities markets, has started testing tokenized securities infrastructure. Nasdaq and the New York Stock Exchange have also begun tokenization initiatives.
These efforts reflect a growing belief that tokenization can upgrade capital markets. Tokenization involves representing traditional assets as blockchain-based tokens. Proponents say it could enable faster settlement, round-the-clock trading and more efficient movement of assets. Citi has estimated that tokenized securities could become a $5.5 trillion market by 2030. That includes $2.6 trillion in tokenized equities.
Expanding beyond U.S. stocks
Until now, tokenized equity platforms have focused mostly on replicating U.S. markets onchain. They have offered blockchain-based versions of popular stocks like Nvidia, Apple and Tesla. By expanding xStocks to overseas markets, investors can access a broader range of companies. That includes high-flying Asian firms tied to the AI supply chain, which have become increasingly popular among global retail traders.
The GTN partnership marks what Payward calls the next stage of xStocks. The platform started last year with tokenized U.S. stocks and exchange-traded funds. It now supports more than 500 tokenized securities. According to Payward, it has processed over $35 billion in trading volume and has nearly 200,000 holders. The products remain unavailable to U.S. investors for now.
